October 9, 2015
Q1. Which business processes are the most important at Summit Electric Supply? Why?
Net Weaver Business Warehouse
SAP Net Weaver offer users many advantages for all aspects of business process management and supports the entire life cycle of business processes, from planning, implementation, and monitoring, to optimization. In the case of Summit Electric, this protocol was designed to make “better use of data in their ERP system.” Net Weaver software helped Summit Electric evaluate profitability from its “sales channel” from consumers, sales, and manufacturing. Using business intelligence (BI) solutions, Summit Electric has focused on sales order quotes, to supplier performance, and delivery times.
Paybacks and Charge backs
For Summit Electric keeping track of the vendor cost recovery programs, validity dates, and associated SKUs using outdated legacy systems was a daunting task; complexity creates costs and errors. As Summit Electric grows exponentially, they needed an ERP system that measured orders and inventory at the growth pace and also reduce costs and errors. With this software solution, Summit Electric can capture charge back data; manage claims, control varied and changing charge back agreements. The application ultimately changes paybacks and charge backs management to a systematic and effective methodology.
This application also helps Summit Electric to:
- Continually create and manage agreements to maximize charge back recovery
- Communicate with vendors electronically (Web or email)
- Produce separate charge back audit trails (activity reports), and other timely reports.
Q2. What problems did Summit have with its old systems? What was the business impact of problems?
a) Delay with their supplies.
b) The system was a complicated system because it would separate different categories.
Q3. How did Summit’s ERP system improve operational efficiency and decision making?
a) Not able to keep up with the business.
b) Handle a few range of numbers and location.
c) Caused delays and time consuming task that was not needed to take as much time as it did.
Q4. Describe two ways in which Summit’s customers benefit from the new ERP system.
ERP System improved Summit’s Operational Efficiency and Decision Making:
1)Faster distribution
2)Simplify the works/tasks
3)Time efficiency
4)Able to view stocks more often
5)Able to evaluate profitability
6)More easy more simple
Q5. Diagram Summit’s old and new process for handling charge backs.
Charge back is the return of funds to a consumer. The chargeback mechanism exists primarily for consumer protection. For the distribution company, charge back occurs when the supplier sells a product at a higher price to the distributor than the price they have set with the end user.
Old process
For handling charger backs had flaws in it where the company was losing money and sometime barely making any profit. Processing charge back has to compare the sale to contract. A distributor can have up to hundreds maybe thousands of contract. SES need to identify the charge back and which manufacturer with enough documentation of the contract or a lot of manual work. SES need go through the customers invoice with detailed manufacturers identified and put the charge back in Microsoft Excel.
New process
For handling charge backs had flaws more efficient. It automatically review Summit’s billing activity for the day. All charge backs agreements loaded in the SAP system by the end of every day. There is a match in the system and they are able to claim. New process is able to create a separate charge backs document outside the customer invoice and able to process more quickly with review in the same day. SES increased its claim by 118% over the old system.